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Averaging $9,879 Net Profit Per Month!

Up for sale is an easy-to-run, 4-year-old auto accessory business with a history of consistent and upward-trending sales and profits. The site sells its own unique, custom, private-labeled auto accessory part that the owner has developed himself. In fact, he's filed a patent (which is currently pending) to protect the design/technology he's developed for the products. The pending patent as well as the custom molds and tooling equipment the manufacturer uses to produce the products are included in the sale, along with ~$5,000 of inventory. Over the past 12 months (Oct 2017 - Sep 2018), the site/business has averaged $16,647 monthly gross revenue and $9,879 monthly net profit (after all expenses), which gives the business a ridiculously high 59.3% net profit margin. Traffic, revenues and profits have steadily increased from year to year, and there are plenty of growth opportunities to further increase the bottom line and take the business to the next level.

The entire operation is very easy to run, only requiring ~5 hours per week of owner attention. The owner (who is a long-time Member of Store Coach) is selling the business because he was recently recruited for a leadership position at a much larger company, which will require a bigger time commitment from him and will not leave enough time for him to sustain this business to his satisfaction without sacrificing too much time away from his wife and three young children who are growing up fast.

P&L AND FINANCIAL INFORMATION

Here's the Profit & Loss Statement for the 12-month period October 2017 - September 2017. (Click on the statement to see the full-size image in a new tab.)

* Please note that the 'Product Costs' line item has been "standardized" over the 12-month period to eliminate the impact of the timing of when inventory is purchased. In an effort to report product costs in the same month as the associated revenue (i.e. accrual-basis accounting), the P&L above was prepared by multiplying the average 'Product Costs' percentage (which is 7.71% of revenue) to the monthly revenue figure for each of the 12 months to yield the 'Product Costs' figures for each month. (For example, if the net revenue for a particular month was $14,000, the 'Product Costs' amount for that month would be shown as $1,079 (7.71% of revenue), even if actual cash payments to the supplier that calendar month were higher or lower due to the timing of when inventory was purchased.) Here's a summary of the key numbers from the P&L...

As you can see from the P&L above, approximately 83% of total revenue was derived from direct website sales. eBay and Amazon UK sales didn't begin until January 2018 and December 2017, respectively, and have provided a nice boost to revenue, but the lion's share of revenue continues to come from the website. The profit margin for these products is an amazing 70.3% (after product costs and shipping/fulfillment costs), leaving A LOT of wiggle room for marketing and advertising. And unlike many markets/niches where the margins are so slim that the 10-15% selling fees on third-party marketplaces like Amazon and eBay wipe out most of your profit margin, this business still has ~65% profit margins AFTER those third-party selling fees! The current owner will of course give the eventual buyer the opportunity to perform extensive due diligence and verify all of the income claims and other information presented in this listing. This will include doing a number of live "screen-share" web meetings to log in and view reports and transactions in the store admin panel, payment accounts, advertising accounts, Google Analytics, etc. But here are a handful of reports and screenshots from BigCommerce (the store platform the store runs on) and eBay to substantiate the income claims.

Following is the Ecommerce Overview report from Google Analytics for the 12-month period Sep 2017 - Aug 2018. One of the most impressive things about this business is its amazing 10.71% conversion rate (as you can see in the Google Analytics report below). Double-digit conversion rates like this are almost unheard of! But due to the fact that the products offer an extremely affordable, high-quality product that solves a specific "pain point" for car owners, the conversion rate is off the charts. And as you'll see in the Growth Opportunities section below, the current owner hasn't experimented with raising the prices at all. There's a very strong likelihood that raising the prices by 50% or even 100% would barely affect the conversion rate at all, sky-rocketing profits!

ABOUT THE PRODUCTS

First and foremost, it's important to know that the owner has developed his own unique product, which will soon (pending approval) have the protection of a U.S. patent. The business isn't reselling other companies' products or generic products from China. It is selling 100% unique, custom, private labeled products the owner has developed himself. Assuming the patent is approved (which the patent attorney has indicated is looking very likely), the patent (which is of course included in the sale) would offer years of protection from direct competition. The products (and the business as a whole) are very highly rated, as you can see from the business' eBay rating...

Because customers love the product so much, it gets a lot of completely free, natural "mentions" and "shout-outs" on automotive forums and blogs. Several customers have even created "DIY" YouTube videos featuring the products! The product line is very unique, and customers absolutely love it because it solves a "pain point" in an extremely cost-effective manner (especially compared to the alternatives). The owner says he gets A LOT of emails from customers sincerely thanking him for developing and selling the product and for saving them a lot of money. The business currently has 34 unique designs/SKUs - all very similar to each other but with slight variations for different auto years/makes/models. All of the SKUs are manufactured by a single factory located in Asia, which the owner has been working with for several years and which has been very trustworthy and reliable. The business owns all of the molds and tooling equipment (valued at $50,000) for manufacturing the products, all of which will be included in the sale. Each unique mold is rated for manufacturing 1,000,000 units, which basically means the molds will outlive you (and probably your children, and quite possibly theirs)! Restocking inventory from the factory is very simple... The owner uses a basic spreadsheet to calculate how many units of each SKU to order. He then places the order (typically for 1,000 - 4,000 units), and the products arrive within 3-4 weeks. Because each unit costs so little, he typically only carries about $5,000 worth of inventory (at cost value) on hand at any given time, which is nice to not have to tie up much capital in inventory. (Note: The sale includes all inventory on hand as of the date of closing.) The current owner has been paying a local gal a flat fee of $1.20 per order to package and ship orders from her home in Oklahoma. The parts are very small and lightweight, making storage and handling them from home very feasible. (Note: That cost, together with the costs for postage and shipping supplies, is reported on the 'Shipping & Fulfillment' line item of the P&L above.) He's fairly confident this gal (who he says is awesome!) would be willing to continue working for the new owner, but he obviously can't 100% guarantee that she'd be willing to stay on and for how long. But you'd have plenty of options for handling fulfillment:

For the benefit of the eventual buyer, we are not disclosing the domain name of the website or details about the products here in this public listing. If you're a serious buyer with the means to potentially acquire this business, please sign the NDA below to begin the due diligence process.

MARKETING AND TRAFFIC

Here is the 'Acquisition Overview' report from Google Analytics for the 12-month period Sep 2017 - Aug 2018, which shows the traffic breakdown by source.

As you can see in the report above, the site's #1 traffic source is 'Organic Search'. Approximately 56% of traffic comes from free, organic traffic from search engines like Google and Bing, which stems from the solid organic rankings the site has achieved thanks to a combination of a) strong on-page Search Engine Optimization (SEO) and b) links from other sites on the web. As was mentioned above, because customers are so happy with the product, the site gets a lot of "mentions" and "shout-outs" on automotive forums and blogs, which results in natural links to the site and boosts its rankings. The #2 traffic source (accounting for 22.4% of total traffic) is 'Direct' traffic (i.e. people who type the domain name of the site directly into their web browser). This means that 22.4% of visitors know the site's domain name and navigate directly to the site, likely because they've a) heard about the site by name, b) placed an order in the past, or c) visited the site before. It's quite uncommon for an eCommerce store to have such a high percentage of its overall traffic be from direct traffic. This is indicative of the fact that the site has a very strong brand reputation and name recognition. 'Paid Search' (i.e. Google ads) is the site's #3 traffic source and only accounts for 9.5% of total traffic. It's great that the site isn't dependent on paid traffic, but the current owner has probably been leaving quite a lot of money on the table each month by not spending more on paid traffic. We'll discuss this below in the Growth Opportunities section below. The report above (which shows all traffic for only the past 12-month period) doesn't do the site justice in terms of its organic rankings growth. Here's a screenshot of the 'Organic Search' Google Analytics report that shows how free, organic traffic has grown over the past couple of years (Sep 2016 - Aug 2018).

GROWTH OPPORTUNITIES

Experiment with Higher Price Points - As was mentioned above, the current owner hasn't experimented with higher price points at all, simply because he's been content with the amazing 72.3% profit margin (after COGS, shipping/fulfillment & merchant fees) he already has. But the fact of the matter is that these products solve a major "pain point" for customers and saves them hundreds of dollars compared to the alternatives. So you could very likely raise the prices pretty significantly (150% - 300%) without hurting the conversion rate much at all. This one little change could double (or more!) the business' bottom line!

Release New Products for Other Years/Makes/Models - The owner gets dozens of requests for new products (for years/makes/models he current doesn't offer) every week. Over the years, he's slowly added new products (in fact, he'll be releasing 2 new SKUs here in the next few weeks, which should provide a nice boost to revenue), but remember, he's only been putting ~5 hours per week into this business. If you were to take a more aggressive approach with adding new SKUs that are requested often, revenues and profits could be increased substantially.

Expand Amazon and eBay Operations - The current owner currently only has 4 of his 34 SKUs (soon to be 36) listed on eBay, 2 SKUs listed on Amazon UK, and zero listed on Amazon.com (USA)! Putting the full catalog of products on eBay and Amazon UK would no doubt increase sales, but the biggest opportunity here is adding the full catalog of products to Amazon.com (USA). Amazon is the world's #1 shopping marketplace with millions upon millions of daily shoppers. And why stop at Amazon.com (USA) and Amazon.co.uk (UK)? There are many other Amazon marketplaces throughout the world (Japan, Australia and Germany, just to name a few).

Expand Internationally - Over the past year, approximately 75% of website revenue was from customers in the United States and 25% was from customers throughout the rest of the world. Aside from throwing 2 products up on Amazon UK, the current owner hasn't done anything to drive international sales. He's not doing any marketing to non-US shoppers; they're just finding the website completely on their own. Also, the website doesn't provide translation options for non-English languages. There are several things you could do to greatly increase international sales.

Increase Paid Advertising Spend - As noted above, the current owner is only spending an average of $413/month on paid advertising, and is exclusively using Google Ads. But take a look at the report below... The average cost per conversion (i.e. the ad costs to generate one sale) is only $4.33! That means that after ALL costs (product costs, merchant fees, shipping/fulfillment costs and advertising costs), each Pay-Per-Click-driven sale (with an Average Order Value of $24.90) adds $13.67 to the bottom line! With such a strong ROI on paid ads, it would be wise to ramp up paid advertising. In addition to simply raising the ad spend (you'll see that one of the campaigns in the screenshot below is maxing out its daily budget), you could add several additional ad types (Google remarketing, Bing product ads, Bing search ads, Bing remarketing, Facebook remarketing and more) and also start advertising internationally.

BUYING PROCESS

Click here to electronically sign the NDA and begin the due diligence process. You can make an offer for this highly profitable online business here. If the sellers accept your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted​ and the sale is pending​. Once your offer is accepted, the official due diligence period will begin​, ​during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason.​ (​Please note that if one of the back-up offers ​​exceeds​​ the original accepted offer, the seller is obligated to sell to the​ original buyer whose offer ​was already accepted. The seller can't back out of the accepted offer just because a higher offer​ was later made​.)​ During this due diligence period, we'll work closely with you and with the seller to help you complete due diligence. Among other things, this will include doing ​one or more​ live screen-share web conference meeting​(s)​ so you can ​verify all financial information​ by reviewing ​the ​store admin panel, bank and merchant accounts, sales reports, Google Analytics traffic reports, supplier invoices, etc. We'll also send you the Asset Purchase Agreement (APA) for you to review. Once the APA is signed and the sale is completed, we will​ 1)​ update this page to let other interested parties know that the sale has been finalized and ​2) ​remove this listing from the Store Coach Website Marketplace.

NOTICE: This website has been SOLD and is no longer available to purchase. We invite you to...

Learn how to build your own profitable business by utilizing the training in ourStore Coach Academy.

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Disclaimer: Store Coach, Inc. is listing this site on behalf of Hermansen Brothers Inc, which is acting as the broker of the sale of this website/business. The website/business owner is solely responsible for all figures, statements, claims and information provided on this page as well as all figures, statements, claims and information which may be provided to interested parties during the due diligence process. It is the responsibility of the eventual buyer to review and verify all figures, statements, claims and information provided by the website/business owner.